CRRC(601766) Soochow Securities·2024-11-01 05:00Investment Rating - The report maintains a "Buy" rating for China CRRC Corporation Limited (601766) [1][4] Core Views - The company's performance is in line with expectations, with a year-on-year revenue increase of 12.22% in Q3 2024. For the first three quarters of 2024, the company achieved a revenue of 152.58 billion yuan, up 6.67% year-on-year, and a net profit attributable to shareholders of 7.245 billion yuan, up 17.77% year-on-year [2] - The railway equipment business has shown significant growth, with a revenue increase of 36.69% year-on-year for the first three quarters of 2024 [2][4] - The report highlights a recovery in railway fixed asset investment, with a completion amount of 561.2 billion yuan in 2024, up 10.28% year-on-year, and a rebound in the bidding for high-speed trains [4] Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 62.544 billion yuan, a 12.22% increase year-on-year, and a net profit of 3.044 billion yuan, a 13.11% increase year-on-year [2] - The gross profit margin for the first three quarters of 2024 was 21.21%, a decrease of 0.61 percentage points year-on-year, while the net profit margin was 6.21%, an increase of 0.60 percentage points year-on-year [3] - The company’s operating expenses ratio decreased to 14.90%, with significant reductions in sales expenses [3] Business Segments - The railway equipment segment generated a revenue of 71.765 billion yuan in the first three quarters of 2024, while the urban rail segment saw a revenue decline of 5.63% [2] - New industries and modern services reported revenues of 50.106 billion yuan and 2.291 billion yuan, respectively, with declines of 10.40% and 49.03% year-on-year [2] Investment Outlook - The report forecasts net profits attributable to shareholders for 2024, 2025, and 2026 to be 13.817 billion yuan, 15.321 billion yuan, and 16.233 billion yuan, respectively, with corresponding dynamic P/E ratios of 17, 16, and 15 [4]